Question 1

Fanny tells Eden that she will sign a lease if it includes a clause permitting Fanny to extend the lease at the same amount of rent. Fanny's intent to sign the lease is determined by reference to Fanny's

Accepted Answer

Fanny's intent is determined by her words and actions, specifically her statement that she will sign the lease if it includes the extension clause. This is a clear expression of her intent to enter into a lease agreement. Her assumptions, beliefs, and unspoken opinions are not relevant to determining her intent in this situation.

Question 2

Howie enters into a contract with Ida over the Internet to buy soybeans as a hedge against falling prices in corn. Neither party prints out a hard copy. Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

Accepted Answer

The E-SIGN Act states that electronic contracts cannot be denied legal effect solely because they are in electronic form. Therefore, the contract between Howie and Ida over the Internet to buy soybeans is valid and enforceable, even though it was not printed out as a hard copy.

Question 3

Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has

Accepted Answer

Dina rejected the initial offer by stating that the price was too high and made a counteroffer of $90,000. This means that she did not accept the initial offer and instead proposed a different offer, making it a counteroffer. Therefore, the correct choice is C.

Question 4

Lightspeed Corporation makes computers, each of which is packaged with a shrink-wrap agreement. Milo buys a Lightspeed desktop. The terms of the shrink-wrap agreement are most likely enforceable if

Accepted Answer

The answer of Lightspeed Corporation makes computers, each of which...

Question 5

Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to

Accepted Answer

Michelle giving out a business card with an e-mail address on it can be inferred as her consent to transact business electronically, as per the UETA.

Question 6

Alan offers to transfer Beth's DVDs to digital flash drives for $150 plus the cost of the drives. The mailbox rule will not apply if Beth accepts the offer by

Accepted Answer

The mailbox rule states that an offer is accepted when the acceptance is sent, not when it is received. However, this rule typically does not apply to offers made through instantaneous communication methods such as e-mail or messenger. Therefore, Beth accepting the offer through e-mail or messenger would not be subject to the mailbox rule, making the correct answer choice A.

Question 7

Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is

Accepted Answer

Once Java rejects the offer, it is terminated and no longer valid.

Question 8

Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record is considered sent when it

Accepted Answer

According to the UETA, an electronic record is considered sent when it leaves the sender's control. Therefore, choice D is the correct answer. Choices A, B, and C are incorrect because they do not reflect the UETA's definition of when an electronic record is considered sent.

Question 9

Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is required urgently. It would be most reasonable for Unified to accept via

Accepted Answer

The answer of Tomato Farms (TF) offers to sell Unified...

Question 10

Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he

Accepted Answer

Floyd did not know of the reward when he found and returned the dog, therefore he did not do so with the expectation of receiving a reward. He cannot recover the reward because he did not have a prior agreement with Elmo regarding it.

Question 11

Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to make and sell copies of the song. This provision is

Accepted Answer

The provision not to make and sell copies of the song is a click-on agreement as it requires Deb to actively agree to it by clicking on a button, and the agreement is presented to her before she can complete the purchase and download the song. A browse-wrap term is a provision that is available to the user but does not require the user's explicit consent or agreement. A shrink-wrap agreement is a type of contract in which the terms and conditions are located inside the package and the user agrees to them by opening the package. A choice-of-law clause is a provision that determines which jurisdiction's law will govern the agreement.

Question 12

Flem, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is

Accepted Answer

By clicking "I accept," Flem is demonstrating his agreement to the terms presented. This creates a binding contract between Flem and GameCenter.com, which includes the terms he viewed before clicking "I accept."

Question 13

Somethin'-in-the-Oven Corporation and Cookin' Good, Inc., transact a deal under the UETA. Other state law applies to a dispute between the parties relating to

Accepted Answer

The UETA governs the validity and enforceability of electronic signatures, contracts, and records in transactions, but it does not affect the substantive law governing the underlying transaction. Therefore, the formation of the parties' contract would be subject to the applicable state law rather than the UETA.

Question 14

Yvon asks Zack, "Do you want to buy one of my fishing rods" This is

Accepted Answer

The answer of Yvon asks Zack, "Do you want to...

Question 15

Deepwater Mining Corporation offers to sell East China Refining, Inc., a certain quantity of unrefined oil. If East China sends an acceptance via Deepwater's authorized mode of communication, it will be effective when it is

Accepted Answer

The answer of Deepwater Mining Corporation offers to sell East...

Question 16

Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is

Accepted Answer

Nate is expressing his intention to sell the skis, but he is not making an offer or accepting an offer. Therefore, the correct choice is D, a statement of future intent.

Question 17

Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is

Accepted Answer

The flyer from Royal Properties, Inc. was an invitation to make an offer and not a contractual offer. Standard Manufacturing Company's response of "We accept your offer" was not a valid acceptance as there was no offer made by Royal Properties, Inc. A valid contract requires a clear offer and a clear acceptance of that offer. Therefore, as there was no valid offer and acceptance in this scenario, there is no contract between Royal Properties, Inc. and Standard Manufacturing Company.

Question 18

Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate

Accepted Answer

Since no time for acceptance is specified in the offer, it will terminate after a reasonable period of time. This can vary depending on the circumstances, but it is generally considered to be a few days to a couple of weeks. Option B and C are not applicable as they specify a fixed time period, while D is incorrect as all offers have to terminate at some point.

Question 19

Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are

Accepted Answer

The answer of Magic Math Corporation makes business accounting software,...

Question 20

Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, "I'll pay no more than $5,000." Grant says, "Forget it." Grant's offer was terminated by

Accepted Answer

The answer of Grant offers to sell his Honda Civic...

Quiz 11: Agreement in Traditional and E-Contracts